News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • 🇫🇷 Inflation Rate YoY Prel (SEP) Actual: 0.1% Previous: 0.2% https://www.dailyfx.com/economic-calendar#2020-09-30
  • Heads Up:🇨🇭 KOF Leading Indicators (SEP) due at 07:00 GMT (15min) Expected: 106 Previous: 110.2 https://www.dailyfx.com/economic-calendar#2020-09-30
  • IG Client Sentiment indicates that gold traders are heavily leaning towards the long side, with 80% of positions net long, while 20% net short. Retail traders added short (+12%) exposure while trimming long (-3%) positions from a day ago. https://www.dailyfx.com/forex/market_alert/2020/09/30/Gold-Silver-Price-Analysis-Weighed-by-Stronger-US-Dollar-Post-Debate.html https://t.co/QenBWVHLzF
  • Heads Up:🇫🇷 Inflation Rate YoY Prel (SEP) due at 06:45 GMT (15min) Previous: 0.2% https://www.dailyfx.com/economic-calendar#2020-09-30
  • 🇬🇧 Nationwide Housing Prices YoY (SEP) Actual: 5% Expected: 4.5% Previous: 3.7% https://www.dailyfx.com/economic-calendar#2020-09-30
  • 🇬🇧 GDP Growth Rate QoQ Final (Q2) Actual: -19.8% Expected: -20.4% Previous: -2.5% https://www.dailyfx.com/economic-calendar#2020-09-30
  • 🇬🇧 GDP Growth Rate YoY Final (Q2) Actual: -21.5% Expected: -21.7% Previous: -2.1% https://www.dailyfx.com/economic-calendar#2020-09-30
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/BcggJpUF3n
  • 🇩🇪 Unemployment Rate Harmonised (AUG) Actual: 4.4% Previous: 4.4% https://www.dailyfx.com/economic-calendar#2020-09-30
  • 🇬🇧 GDP Growth Rate YoY Final (Q2) Actual: -21.5% Expected: -21.7% Previous: -1.7% https://www.dailyfx.com/economic-calendar#2020-09-30
Bitcoin's Price Falls Sharply, Bitcoin Cash Surges

Bitcoin's Price Falls Sharply, Bitcoin Cash Surges

2017-12-20 11:51:00
Nick Cawley, Strategist
Share:

Bitcoin News

- Bitcoin drops around $3,000 since BTC futures were launched on the CME.

- Bitcoin Cash doubles in value this week on transaction issues and Coinbase support.

- Altcoins give back some of their recent gains but remain supported.

Bitcoin Futures Point to Lower Prices Ahead

This week’s launch of Bitcoin futures on the Chicago Mercantile Exchange (CME) has done little to calm the recent volatility in the price of BTC with prices in the cash market trading in a $4,000 range in the last three days. While the opening CME futures price pointed to prices in excess of $20,000 early next year, the January 2018 contract traded as low as $16,435 Wednesday. Bitcoin futures are a legal agreement to buy or sell BTC’s at a predetermined price on a specific date in the future.

In contrast, the price of Bitcoin Cash (BCH) has doubled this week on news that the original Bitcoin network is becoming increasingly difficult to use due to slow transaction speeds and high transaction costs. The original Bitcoin network has a block size of 1MB while the Bitcoin Cash network has a block size of 8MB, making transactions quicker and fees cheaper.

Bitcoin Cash also received a boost when Coinbase, one of the world’s largest cryptocurrency exchanges, said that it would support the coin. This announcement caused sharp market moves and the company is now investigating the price spikes for any evidence if employees violated the company’s trading policies.

Bitcoin Cash vs Bitcoin Chart – Four Hour Timeframe (December 5 – December 20, 2017)

Bitcoin's Price Falls Sharply, Bitcoin Cash Surges

Controversial SegWit2x Fork Back in the Spotlight

The original SegWit2x hard fork was pulled in November this year after the Bitcoin community lacked consensus on the split. The 2x fork was supposed to double the block size on the chain to 2MB and change other protocols. Now the SegWit2x project has said that it will carry out this hard fork when block 501451 is reached on the chain, an event that is anticipated to happen on December 28.

And as well as the new fork producing a new, free, coin (B2X) for holders of Bitcoin on a 1:1 ratio, the project developers have also said that BTC holders will receive a ‘proportional number of Satoshi Nakamoto’s Bitcoins as a reward for their commitment to progress.”

Altcoins Drift Lower but Remain in Record High Territory

The last couple of weeks have seen a variety of altcoins soar to record highs as investors diversify away from the market heavyweights. These moves have fueled yet more talk of a ‘Cryptocurrency Bubble’ as cynics question the extreme valuations given to these new companies. Among the recent altcoin ICOs that have made headlines, IOTA (IOTA) is currently up 490% on the month at $5.32, Ripple (XRP) is up 250% in the same time frame at $0.77 while Cardano (ADA) is up a staggering 1800% at $0.498, giving the nascent company a market valuation of nearly $13 billion.

Cryptocurrency Prices and Valuations – December 20, 2017

Bitcoin's Price Falls Sharply, Bitcoin Cash Surges

Bitcoin Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars

If you are interested in trading Bitcoin, Bitcoin Cash or Ethereum we can offer you a wide range of free resources to help you. We have an Introduction to Bitcoin Trading Guide along with a Free Practice Account. In addition we run a Weekly Bitcoin Webinar and have an IG Bitcoin Sentiment Indicator to help you gauge the market and make more informed decisions.

--- Written by Nick Cawley, Analyst.

To contact Nick, email him at nicholas.cawley@ig.com

Follow Nick on Twitter @nickcawley1

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES